AI-Driven Digital Marketing Capabilities and Sustainable Business Performance: Mediating Role of Sustainability Orientation and Moderating Role of Firm Resources

Abstract

This study aims to bridge the gap in existing literature by examining the effect of Artificial Intelligence (AI)-driven digital marketing capabilities on business performance. It uses sustainability orientation as a mediator and resources as a moderator to add new insights. This study is based on the Resource-Based View and Dynamic Capabilities Theory. This study argues that AI-driven capabilities are considered a strategic resource that enhances sustainability orientation, leading to better business performance. PLS-SEM analysis of the data was used to assess the study objectives. The results show that AI-driven digital marketing capabilities have a significant effect on sustainability orientation (β = 0.575, p < 0.001), and sustainability orientation has a significant effect on business performance (β = 0.693, p < 0.001). The findings show that sustainability orientation mediates the effect of AI-driven capabilities on business performance. It also supports that firm resources moderate the relationship between AI-driven capabilities and sustainability orientation with low intensity. This study will help entrepreneurs use AI for business growth. The study also contributes to the literature by showing that sustainability performance results are better under strategic alignment rather than only the adoption of AI-driven capabilities.